Dollar Tree down on Jefferies' rating, target price cuts

** Shares in Dollar Tree DLTR down 2.3% at $85.65 premarket, lowest level since May 19

** Jefferies cuts rating to "underperform" from "hold," and PT to $70 from $110

** Says "inflation, management decisions, and tariffs have turned a simple business model into a complex one"

** Adds, margin pressure, raising competition, and macro headwinds add to pressure on DLTR ahead of investor day on October 15

** Says Walmart WMT cheaper alternative; adds, "DLTR’s differentiation is eroding, leaving its multi-price strategy exposed"

** Average rating on stock by 28 analysts is "hold," median PT $109 - data compiled by LSEG

** YTD, up to last close, DLTR up 17%, WMT advances about 13%, S&P 500 SPX up nearly 15%